Australian Dollar Climbs As Fed Hints At Slowdown In Rate Hikes
November 23 2022 - 9:20PM
RTTF2
The Australian dollar moved up against its most major
counterparts in the Asian session on Thursday, as risk sentiment
improved after the minutes from the Federal Reserve's latest policy
meeting showed that the pace of interest rate increases would slow
soon.
The minutes said a "substantial majority" of meeting
participants judged that a slowdown in the pace of rate hikes would
likely "soon be appropriate."
A slower pace of rate hikes would better allow the Fed to assess
progress toward its goals of maximum employment and price
stability, the minutes said.
Market participants widely expect the Fed to raise rates by 50
basis points in December.
U.S. markets will be closed on account of the Thanksgiving
holiday.
The aussie climbed to 0.6768 against the greenback, its highest
level since November 16. The aussie is seen finding resistance
around the 0.69 level.
The aussie was up against the loonie, at nearly a 3-month high
of 0.9023. If the aussie continues its rise, 0.92 is possibly seen
as its next resistance level.
The aussie edged up to 1.0811 against the kiwi and 1.5428
against the euro, from its prior lows of 1.0773 and 1.5459,
respectively. Next key resistance for the currency is likely seen
around 1.10 against the kiwi and 1.52 against the euro.
In contrast, the aussie pulled back against the yen, with the
pair trading at 93.74. The aussie may find support around the 90.00
level.
Looking ahead, Germany's ifo business confidence survey data for
November is due in the European session.
At 7.30 am ET, the European Central Bank is scheduled to publish
the account of the monetary policy meeting of the Governing Council
held on October 26 and 27.
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